A home/housing loan, also known as a mortgage, is an amount of money borrowed by an individual, usually from banks and companies that lend money. The borrower has to pay back the loan amount with interest in Easy Monthly Instalments or EMI's over a period of time that can vary between 10-30 years depending on the nature of the loan.
Home Loan Types
An individual can choose a home loan as per the need and affordability. Mentioned below are the different types of home loan products available in India:
This type of loan is taken to buy a residential property, including flats, row houses and bungalows. The maximum loan amount offered by banks is 90% of the present market value of the property. For Non-Banking Financial Companies (NBFCs), this value is 80%.
Eligibility Criteria for Home Purchase Loans
An individual, who wants to avail a home purchase loan, must fulfill the following general conditions to be eligible for the loan. These criteria may vary from lender to lender.
| Particulars | Salaried Professionals | Self-Employed Individuals |
| Age | 18 – 65 years | 18 – 65 years |
| Employment | Min. 2 years of experience | Min. 5 years of experience |
| Credit Score | 750 or above | 750 or above |
Documents Required for Home Purchase Loan
Mentioned below are some common documents required for availing a home purchase loan. However, the requirements may vary from provider to provider.
- Age Proof (Birth certificate, Class 10 marks sheet, etc.)
- Address Proof (Copy of passport, Voter ID, Utility bills, etc.)
- Income Proof (Salary slips and ITR details)
- Identification Proof (PAN card, Passport, Voter ID, etc.)
- Existing Loan Documents (if any)
- Documents of Property to be Purchased
Home Purchase Loan Interest Rates
Mentioned below are the interest rates offered by leading banks on home purchase loan:
| Banks | Interest Rate | Processing Fee (exclusive of GST) |
| SBI Home Loan | 6.70% onwards | Up to 0.4% of the loan amount (Min. of Rs 10,000; Max. of Rs. 30,000) |
| HDFC Home Loan | 6.95% onwards | Salaried/Self Employed Professional – Up to 0.5% of loan amount or Rs. 3,000, whichever is higher Self Employed Non Professional – Up to 1.5% of loan amount or Rs. 4,500, whichever is higher |
| ICICI 30 Year Home Loan | 6.70% onwards | 0.50% – 2.00% of the loan amount or Rs. 1,500 (Rs. 2,000 for Mumbai, Delhi & Bangalore), whichever is higher |
| Axis Home Loan | 6.90% onwards | Up to 1% of the loan amount (Min. Rs. 10,000) |
Home Construction Loans
This type of home loan can be availed by the owner of land to meet the costs of constructing a new house. The loan can also be taken to finish the construction of an unfinished house.
Eligibility Criteria for Home Construction Loan
Following are the conditions that an applicant must meet to be eligible for availing a home construction loan. These criteria may vary from lender to lender.
| Particulars | Salaried Professionals | Self-Employed Individuals |
| Age | 18 – 65 years | 18 – 65 years |
| Employment | Min. 1 year of experience with current employer | Available for professionals and non-professionals |
| Credit Score | 700 or above | 700 or above |
Documents Required for Home Construction Loan
Mentioned below is the list of documents required for availing a home construction loan. However, the requirements may vary from provider to provider.
- Age Proof (Birth certificate, Class 10 marks sheet, etc.)
- Address Proof (Copy of passport, Utility bills, Voter ID, etc.)
- Income Proof (Salary slips and ITR details)
- Identification Proof (Passport, PAN card, Voter ID, etc.)
- Existing Loan Documents (if any)
- Property Documents
Home Construction Loan Interest Rates
Mentioned below are the interest rates offered by leading banks on home construction loan.
| Banks | Interest Rate | Processing Fee (exclusive of GST) |
| SBI Realty Home Loan | 7.50% onwards | 0.40% of the loan amount (Min. of Rs. 10,000; Max. of Rs. 30,000) |
| HDFC Home Loan | 6.95% onwards | Salaried/Self Employed Professional – Up to 0.5% of loan amount or Rs. 3,000, whichever is higher Self Employed Non Professional – Up to 1.5% of loan amount or Rs. 4,500, whichever is higher |
| Canara Site Loan | 6.90% onwards | 0.5% of the loan amount. (Min. Rs. 1,500; Max. of Rs. 10,000) |
| DHFL Home Costruction Loan | 8.75% onwards | Salaried/Self Employed Professional – 0.5% of loan amount (Min. Rs. 2,500) Self Employed Non Professional – Net PAT: 0.5%, Others: 1.0% of loan amount |
Home Improvement Loans
This type of home loan can be availed to renovate, repair or refurnish your home. Home improvement loans are very popular due to low interest rate.
Eligibility Criteria for Home Improvement Loan
Following are the conditions that an applicant must meet to be eligible for availing a home improvement loan. These criteria may vary from lender to lender.
| Age | 18 – 65 years |
| Employment | Salaried, Self-employed Professionals and Non-Professionals |
Documents Required for Home Improvement Loans
Mentioned below is the list of documents required for availing a home improvement loan. However, the requirements may vary a bit from provider to provider.
- Age Proof (Birth certificate, Class 10 marks sheet, etc.)
- Address Proof (Copy of passport, Utility bills, Voter ID, etc.)
- Income Proof (Salary slips and ITR details)
- Property Title Deeds (Original)
- Estimated Renovation Quotation
Home Improvement Loans Interest Rates
Mentioned below are the interest rates offered by leading banks on home improvement loan.
| Banks | Interest Rate | Processing Fee (exclusive of GST) |
| PNB Housing Finance Ltd. | 9.25% onwards | Up to 0.35% of the loan amount (Min. Rs. 2,500; Max. Rs. 15,000) |
| HDFC Bank | 6.95% onwards | Salaried/Self Employed Professional – Up to 0.5% of loan amount or Rs. 3,000, whichever is higher Self Employed Non Professional – Up to 1.5% of loan amount or Rs. 4,500, whichever is higher |
| Canara Bank | 6.90% onwards | 0.5% of the loan amount. (Min. Rs. 1,500; Max. of Rs. 10,000) |
| Bank of Baroda | 6.75% onwards | 0.25% – 0.50% of loan amount |
Home Extension Loans
This type of loan is taken when an individual wants to extend or add more space to the home. For instance, adding a room as per growing family needs.
Eligibility Criteria for Home Extension Loans
Following are the conditions that an applicant must meet to be eligible for availing a home extension loan. These criteria may vary slightly from lender to lender.
| Age | 18 – 65 years |
| Employment | Salaried , Self-employed Professionals and Non-Professionals |
Documents Required for Home Extension Loans
The table below shows the documents required for availing a home purchase loan. However, the requirements may vary a bit from provider to provider.
- Age Proof (Birth certificate, Class 10 marks sheet, etc.)
- Address Proof (Copy of passport, Utility bills, Voter ID, etc.)
- Income Proof (Salary slips and ITR)
- Existing Loan Documents (if any)
- Property/Home Extension-Related Documents
Home Extension Loans Interest Rates
Mentioned below are the interest rates offered by leading banks on a home extension loan.
| Banks | Interest Rate | Processing Fee (exclusive of GST) |
| HDFC Home Extension Loan | 6.95% onwards | Salaried/Self Employed Professional – Up to 0.5% of loan amount or Rs. 3,000, whichever is higher Self Employed Non Professional – Up to 1.5% of loan amount or Rs. 4,500, whichever is higher |
| DHFL Home Extension Loan | 8.75% onwards | Salaried/Self Employed Professional – 0.5% of loan amount (Min. Rs. 2,500) Self Employed Non Professional – Net PAT: 0.5%, Others: 1.0% of loan amount |
| Tata Capital Home Extension Loan | 6.90% onwards | Up to 0.5% of the loan amount |
Land-Purchase Loans
This type of home loan can be availed for the purchase of land or a plot loan for construction or as an investment.
Eligibility Criteria for Land-Purchase Loans
Following are the conditions that an applicant must meet to be eligible for availing a land-purchase loan.
| Age | 18 – 65 years |
| Employment | Salaried, Self-employed Professionals and Non-Professionals |
Documents Required for Land-Purchase Loans
The table below shows the documents required for availing a home purchase loan. However, the requirements may vary a bit from provider to provider.
- Age Proof (Birth certificate, Class 10 marks sheet, etc.)
- Address Proof (Copy of passport, Utility bills, Voter ID, etc.)
- Income Proof (Salary slips and ITR)
- Existing Loan Documents (if any)
- Property-related Documents
Land-Purchase Loans Interest Rates
Mentioned below are the interest rates offered by leading banks on land-purchase loan.
| Banks | Interest Rate | Processing Fee (exclusive of GST) |
| HDFC Bank | 7.05% onwards | Salaried/Self Employed Professional – Up to 0.5% of loan amount or Rs. 3,000, whichever is higher Self Employed Non Professional – Up to 1.5% of loan amount or Rs. 4,500, whichever is higher |
| PNB Housing Finance Ltd. | 7.55% onwards | Up to 1% of loan amount (Min. Rs. 10,000) |
| Bajaj Finserv | 6.95% onwards | For salaried individuals: Up to 0.80% of the loan amount For self-employed individuals: Up to 1.20% of the loan amount |
| DHFL | 8.75% onwards | Salaried/Self Employed Professional – 0.5% of loan amount (Min. Rs. 2,500) Self Employed Non Professional – Net PAT: 0.5%, Others: 1.0% of loan amount |
NRI Home Loans
This type of home loan is taken by Non-Resident Indians for construction of a house or renovation of an old property in India. The maximum tenure for this loan can go up to 30 years, and the interest rate can be fixed or floating.
Eligibility Criteria for NRI Home Loans
Following are the conditions that an applicant must meet to be eligible for availing a home purchase loan. These criteria may vary slightly from lender to lender.
| Age | 18 – 60 years |
| Employment | Salaried Individuals or Self-Employed with at least 2 years of work experience in present company |
Documents Required for NRI Home Loans
The table below shows the documents required for availing a home purchase loan. However, the requirements may vary a bit from provider to provider.
- Passport and work visa copy
- Proof of valid work permit
- Copy of employment contract
- Current overseas residential proof
- Salary slips of past three months
- Salary account statement for past six months
- General power of attorney
- Last year ITR except for NRIs in Middle East nations and Merchant Navy Employees
- Property papers
NRI Home Loans Interest Rates
Mentioned below are the interest rates offered by leading banks on home construction loans.
| Banks | Interest Rate | Processing Fee (exclusive of GST) |
| PNB Housing Finance Ltd. | 7.55% onwards | Up to 1% of the loan amount (Max. Rs. 10,000) |
Balance Transfer
Home loan balance transfer can be availed by an individual who wants to transfer an existing home loan from a bank/NBFC to another provider/lender. The major reason for availing this loan is getting a lower interest rate from the new lender and availability of top-up facility.
Eligibility Criteria for Balance Transfer
Mentioned below are some of the general conditions that an applicant must meet to be eligible for availing a home loan balance transfer. However, these criteria may slightly vary from lender to lender.
| Age | 18 – 65 years |
| Employment | Salaried and Self-employed Individuals with clear past record of timely repayments with the previous lender |
Documents Required for Balance Transfer
Following is the list of documents required for availing home loan balance transfer.
- Age Proof (Birth certificate, Class 10 marks sheet, etc.)
- Address Proof (Copy of passport, Utility bills, Voter ID, etc.)
- Income Proof (Salary slips and ITR details)
- Bank statement showing repayment of ongoing loan
- Property-related Documents
- Loan statement and list of property documents in possession of the existing lender
Balance Transfer Interest Rates
The table below shows the interest rates offered by leading providers for home loan balance transfer.
| Banks | Interest Rate | Processing Fee (exclusive of GST) |
| SBI Home Loan Balance Transfer | 6.70% onwards | 0.40% of the loan amount (Min. of Rs. 10,000 & Max. of Rs. 30,000) |
| HDFC Home Loan Balance Transfer | 6.95% onwards | Salaried/Self Employed Professional – Up to 0.5% of loan amount or Rs. 3,000, whichever is higher Self Employed Non Professional – Up to 1.5% of loan amount or Rs. 4,500, whichever is higher |
| ICICI Home Loan Balance Transfer | 6.70% onwards | 0.50% – 2.00% of the loan amount or Rs. 1,500 (Rs. 2,000 for Mumbai, Delhi & Bangalore), whichever is higher |
| Bajaj Finserv Balance Transfer | 6.95% onwards | For salaried individuals: Up to 0.80% of the loan amount For self-employed individuals: Up to 1.20% of the loan amount |
Bridge Loan
This type of home loan is taken by people who want to a buy another property by selling off the existing one. The fund helps meet short-term fund requirements like down payment for the new house till the old property is not sold off. Bridge loans are generally offered at higher interest rates with a maximum repayment tenure of up to 2 years.
Eligibility Criteria for Bridge Loan
| Age | 18 – 70 years |
| Eligible customers | All property owners and co-applicants |
Documents Required for Bridge Loan
Following is the list of documents required for availing bridge home loan.
- Age Proof ((Birth certificate, Class 10 marks sheet, etc.)
- Address Proof (Copy of passport, Utility bills, Voter ID, etc.)
- Income Proof (Salary slips and ITR)
- Bank statement showing repayment of ongoing loan
- Property-related Documents
Bridge Loan Interest Rates
The table below shows the interest rates offered by leading providers for bridge loan.
| Banks | Interest Rate | Processing Fee (exclusive of GST) |
| SBI Bridge Loan | 1st year: 9.50% 2nd year: 10.50% | Up to 0.35% of the loan amount (Min. Rs. 5,000) |
Comments
Post a Comment